Law, Stephen; (2018) A multi-scale exploration of the relationship between spatial network configuration and housing prices using the hedonic price approach. A Greater London case study. Doctoral thesis (Ph.D), UCL (University College London).

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Abstract

Using the hedonic price approach, the prices of heterogeneous goods such as housing can be derived from the sum of the item’s utility-bearing parts. Since its introduction, the approach has become an established real estate method for valuing intangible goods. Despite the well-known impacts of amenity and access on house prices, limited attention has been given to the impacts of the urban built form on property values. This stems partly from the fact that few quantitative methods exist that can provide a thorough understanding of the built environment. Through three interrelated strands of empirical research, this research proposes using spatial configuration methods and the hedonic price approach as an empirical strategy for enhancing the analysis and interpretation of the housing market in the densely populated region of Greater London. The first strand of the argument focuses on the correlation between accessibility and house prices. Existing results show a strong relationship between geographic accessibility , such as Distance to the Central Business District and house prices. There are, however, two problems with this approach. First, geographical measures assume a predetermined employment location; second, is that such measures often fail to consider the network effects on house prices. This study reveals that spatial network centrality and geographical measures are jointly significant in explaining house prices. The second strand of the argument focuses on the relationship between the local area and house prices. In the past, census output areas were used for measuring this relationship. In reality, however, utilising these arbitrary definitions has led to inconsistent results. In contrast, the proposed study takes a Street-based Local Area (St-LA)” approach, which can more accurately captures the subtle differences in the urban environment. In response to the common problem of using census output areas as building blocks for defining housing submarkets, the third strand of this research shows that housing submarkets can be described more accurately using the St-LA approach through the application of a hedonic price model. The results demonstrate that spatial configuration factors are significant when correlated with house prices at different scales. This research links the results of the three areas of investigation in order to provide a more comprehensive understanding of the economic performance of the built form and to encourage planners, decision-makers and developers in using spatial configuration-based methods in planning and design that can lead to more equitable and sustainable policy making.

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